Adjustable Rate Mortgages - ARMs - Roll Over Numbers for 2006 and 2007

The rollover numbers for adjustable rate mortgages are staggering . For 2006 it will be 330 million and 2007 it will triple to 1 trillion dollars. The forclosure rate in 2007 will be truly amazing to watch if things do not change in the near future.

For homeowners using adjustable rate mortgages (ARMs), rising interest rates mean ballooning payments. At best, the upwardly moving rate in an ARM puts they date of full ownership further over the horizon. At worst, homeowners on tight budgets have trouble affording the payments.
The Mortgage Bankers Association estimates that some $330 billion worth of ARMs will adjust in 2006 and $1 trillion worth will reset by the end of 2007. With a $200,000 loan adjusting upward from 4 percent to 6 percent, the monthly bill would increase to about $1,200, from $955. Money Magazine